Nearly 10,000 HRMC tax debts cancelled

Almost a quarter (23%) of people who appealed against last year`s demands for repayment of income tax debts have had those debts cancelled, The Telegraph reports.

Last year, HM Revenue & Customs (HMRC) sent letters to around 1.4 million people who had unknowingly paid too little tax on their earnings, at a combined value of £3.8 billion. The underpayments were the result of an error in HMRC`s systems.

But David Gauke, a Treasury minister, revealed in Parliament that almost 10,000 people had their debts cancelled under the "extra-statutory concession" A19.

A19 is a concession in the HMRC`s own rules which states that tax debts can not be claimed if the taxpayer "could reasonably have believed that his or her tax affairs were in order".

The Telegraph states that a further 250,000 pensioners had already had their tax debts cancelled under this concession.

Last year`s HMRC errors also led to many workers overpaying on their tax, with 4.3 million expected to receive an average rebate of £419.



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